The bandwagon of ICOs has created a ripple and garnered attention of people across the world. People are eager to get on board and try investing in the ICO tokens.
Distinct from digital coins or cryptocurrencies, these digital tokens are emerging as one of the fastest growing trend for fund raising where the investor buys an ICO being offered by the entrepreneur for investing in his business and pays him in Bitcoins or other virtual currencies.
The company first of all create a digital token that are pre-defined by the issuing company which takes into account the amount, terms and conditions and value. It will serve as the smart notary for the future transactions, so one must make sure that all the criterias are fulfilled.
After this, the token is acquired by the investor who will use the ICOs for dealing in what has been promised by the issuing company. It can then be used for transactions which is supported by the platform that issued the token.
There are different types of ICOs such as Utility tokens, Stock tokens, Credit tokens and Token combos which are available that are offered by the issuing company. Thus the investor can check and see which kind of token suits him the most.
However, before investing in the ICOs, it is necessary to evaluate every possible aspect of a campaign and decide if it a win-win deal or a risky one.